New Opportunities in
Metalworking Fluids Market

Little Falls, NJ— With limited opportunities
for growth in an otherwise flat market, North American suppliers of metalworking
fluids are focusing on safety, health, and environmental issues to stay
one step ahead of changing regulations and advance development of their
product lines, according to a recently published study by Kline &
Company.

"Environmental and health issues have been major drivers behind the
reformulation of metalworking fluids over the past 10 to 15 years,"
says Dr. Frans van Antwerpen, engagement manager for Kline. "Although
significant improvements have been made during that period, these two
factors will continue to drive developments over the next five years as
well."

Products with reduced misting levels remain a leading area of focus for
metalworking fluid suppliers, including major players like D.A. Stuart,
Quaker Chemical, Fuchs Lubricants, and Henkel Surface Technologies, as
well as smaller niche suppliers like Hangsterfer's Laboratories and Perkins
Products. Pressure from the Occupational Safety and Health Administration,
the United Autoworkers Union, and other organizations has prompted companies
to take major steps toward meeting exposure limits for metalworking fluid
aerosols recommended by the National Institute of Occupational Safety
and Health.

Metalworking companies, including those in the transportation equipment,
fabricated metal products, and machinery industries, are increasingly
looking to value-added synthetics, which have lower misting levels because
of the absence of mineral oil and the dilute concentrations in which they
are used.

"The disadvantage to these products is that the spent solutions are
often difficult to separate and waste-treat," says Dr. van Antwerpen.
"So there are interesting opportunities for companies to develop
synthetics that can be more readily waste-treated, such as emulsion synthetics."

Another path toward improving the health and environmental impacts of
metalworking fluids is likely to be found in vegetable oil-based and synthetic
ester-based formulations. Airborne mists of these formulations do not
raise the health concerns associated with petroleum mists, and vegetable
oils actually offer better lubricity than mineral oils.

The automotive industry has taken the lead in pushing the development
of these new products, and Ford has reportedly written specifications
for vegetable oil-based coolants. A number of issues must be addressed,
however, before vegetable oil-based fluids can replace mineral oil-based
products on a more widespread basis.

"Additives are less soluble in vegetable oil, and the additives have
to be biodegradable to fully exploit the biodegradability of the base
stock," says van Antwerpen. "More significantly, vegetable oils
cost about twice as much as petroleum-based oils, and esters are even
more expensive. So a supplier that can bring a more affordable product
to market before its competitors should be able to achieve major market
penetration."

Removal fluids that are more naturally biostable represent another goal
for ambitious suppliers. Regulatory requirements for biocides are becoming
increasingly stringent, complicating their use. In addition, a possible
link between the popular formaldehyde-releasing triazine biocides and
hypersensitivity pneumonitis has led DaimlerChrysler to proscribe the
use of these biocides in the company's metalworking fluids.